I have a 3 bedroom home and I'm thinking of renting out one or two of the rooms as money is just getting too tight. I have no experience in this and want to try to avoid making mistakes.
1. I'm thinking of using Craigslist, but I also wouldn't mind paying a RE agents fee if they can find someone. Can I do both? (i.e. list on CL and if I get a tenant myself just tell the RE agent to take a hike?)
2. How can I make sure that I'm not running afoul of any local (or state or federal) rules. I know I can't discriminate based on age, race, sex, color, creed, astrological sign, or favorite Beetle, but how can I make sure that fire escapes are up to code, smoke alarms are adequate etc.?
3. How do I check out prospective tenants? I figure I have to get their name, SSN, and consent as part of the application... but then what? Is there a fairly ubiquitous service that everyone uses?
4. I want to do everything on the up and up (i.e. I'm not going to try to get the tenants to pay cash and then try to hide it). I know I have to declare rental income on my taxes, would it make sense to incorporate a holding company for the property, have it take income from the tenants (and me) and pay the mortgage? That would be protect me from lawsuits, right? Could I also deduct repairs on the house as expenses charged to the holding company?
Is there anything else I'm not thinking to ask? Any help is appreciated.
1. I'm thinking of using Craigslist, but I also wouldn't mind paying a RE agents fee if they can find someone. Can I do both? (i.e. list on CL and if I get a tenant myself just tell the RE agent to take a hike?)
2. How can I make sure that I'm not running afoul of any local (or state or federal) rules. I know I can't discriminate based on age, race, sex, color, creed, astrological sign, or favorite Beetle, but how can I make sure that fire escapes are up to code, smoke alarms are adequate etc.?
3. How do I check out prospective tenants? I figure I have to get their name, SSN, and consent as part of the application... but then what? Is there a fairly ubiquitous service that everyone uses?
4. I want to do everything on the up and up (i.e. I'm not going to try to get the tenants to pay cash and then try to hide it). I know I have to declare rental income on my taxes, would it make sense to incorporate a holding company for the property, have it take income from the tenants (and me) and pay the mortgage? That would be protect me from lawsuits, right? Could I also deduct repairs on the house as expenses charged to the holding company?
Is there anything else I'm not thinking to ask? Any help is appreciated.